4.3 SOME ASPECTS OF SPATIAL PRICING POLICY AND MARKET AREAS 4.3. 1 Market-Area Overlap 4.3.2 Spatial Price Discrimination 4.3.3 Pricing Policy and Spatial Competition 4.4 COMPETITION AND LOCATION DECISIONS 34 4.5 MARKET AREAS AND THE CHOICE OF LOCATIONS 4.5. 1 The Location Pattern of a Transfer-Oriented Activity 35 4.5.2 Transfer Orientation and the Patterns of Nonbusiness activitie 4.6 SUMMARY TECHNICAL TERMS INTRODUCED IN THIS CHAPTER SELECTED READINGS APPENDIX 4-1 66666 Conditions Determining the Existence and Size of Market Areas This reduces to ENDNOTES 5 Location Patterns Dominated by Cohesion 5.1 INTRODUCTION 5.2 EXTERNAL ECONOMIES: OUTPUT VARIETY AND MARKET ATTRACTION 5.3 EXTERNAL ECONOMIES CHARACTERISTICS OF THE PRODUCTION PROCESS 40 5.3.1 Introduction 5.3.2 External Economies and Scale 5.3.3 Lichtenberg's Study of"External-Economy Industries 41 5.4 SINGLE-ACTIVITY CLUSTERS AND URBANIZATION 43 5. 4. 1 Introduction 43 5.4.2 Urbanization Economies 43 5.4.3 Measuring Urbanization Economies 5.5 MIXED SITUATIONS 5.5. 1 Attraction plus Repulsion 45 5.5.2 Coexistence of Market Areas and Supply Areas, When Both Sellers and Buyers Are Dispersed 5.6 SUMMARY TECHNICAL TERMS INTRODUCED IN THIS CHAPTER SELECTED READINGS ENdNOTES 6 Land Use 6.1 WHAT IS"LAND"? 47 6.2 COMPETITION FOR THE USE OF LAND 6.3 AN ACTIVITY'S DEMAND FOR LAND: RENT GRADIENTS AND RENT SURFACES 6.3. 1 Rent Gradients and Surfaces with Output Orientation 6.3.2 Rent Gradients and Rent Surfaces with Input Orientation 6.3.3 Rent Gradients and Multiple Access 6.4 INTERACTIVITY COMPETITION FOR SPACE 6.4. 1 A Basic Sequence of Rural Land Uses 6.4.2 Activity Characteristics Determining Access Priority and Location 6.5 RURAL AND URBAN LAND USE ALLOCATION 6.5. 1 Some Characteristics of Urban Economic Activity 6.5.2 Equilibrium of Land Uses and Rents 6.6 RESIDENTIAL LOCATION 54 6.7 RENT AND LAND VALUE 56 6.7. 1 Speculative Value 6.7.2 Improvements on Land 6. 8 SUMMARY SELECTED READINGS APPENDIX 61 Derivation of Formulas for Rent Gradients and Their Slopes ENDNOTES 7 The Spatial Structure of Urban Areas 7.1 INTRODUCTION 7.2 SOME LOCATION FACTORS 22 4.3 SOME ASPECTS OF SPATIAL PRICING POLICY AND MARKET AREAS .............................................. 31 4.3.1 Market-Area Overlap........................................................................................................................... 31 4.3.2 Spatial Price Discrimination................................................................................................................. 32 4.3.3 Pricing Policy and Spatial Competition.................................................................................................. 33 4.4 COMPETITION AND LOCATION DECISIONS...................................................................................... 34 4.5 MARKET AREAS AND THE CHOICE OF LOCATIONS ......................................................................... 35 4.5.1 The Location Pattern of a Transfer-Oriented Activity............................................................................... 35 4.5.2 Transfer Orientation and the Patterns of Nonbusiness Activities ................................................................ 35 4.6 SUMMARY ......................................................................................................................................... 36 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 36 SELECTED READINGS............................................................................................................................. 36 APPENDIX 4-1.......................................................................................................................................... 36 Conditions Determining the Existence and Size of Market Areas....................................................................... 36 This reduces to ........................................................................................................................................... 37 ENDNOTES .............................................................................................................................................. 37 5 Location Patterns Dominated by Cohesion................................................................................................ 39 5.1 INTRODUCTION ................................................................................................................................. 39 5.2 EXTERNAL ECONOMIES: OUTPUT VARIETY AND MARKET ATTRACTION ...................................... 39 5.3 EXTERNAL ECONOMIES: CHARACTERISTICS OF THE PRODUCTION PROCESS ............................. 40 5.3.1 Introduction ....................................................................................................................................... 40 5.3.2 External Economies and Scale.............................................................................................................. 40 5.3.3 Lichtenberg’s Study of "External-Economy Industries"............................................................................ 41 5.4 SINGLE-ACTIVITY CLUSTERS AND URBANIZATION........................................................................ 43 5.4.1 Introduction ....................................................................................................................................... 43 5.4.2 Urbanization Economies...................................................................................................................... 43 5.4.3 Measuring Urbanization Economies...................................................................................................... 44 5.5 MIXED SITUATIONS........................................................................................................................... 45 5.5.1 Attraction plus Repulsion..................................................................................................................... 45 5.5.2 Coexistence of Market Areas and Supply Areas, When Both Sellers and Buyers Are Dispersed ..................... 45 5.6 SUMMARY ......................................................................................................................................... 46 TECHNICAL TERMS INTRODUCED IN THIS CHAPTER........................................................................... 46 SELECTED READINGS............................................................................................................................. 46 ENDNOTES .............................................................................................................................................. 46 6 Land Use.............................................................................................................................................. 47 6.1 WHAT IS "LAND"? .............................................................................................................................. 47 6.2 COMPETITION FOR THE USE OF LAND............................................................................................. 48 6.3 AN ACTIVITY’S DEMAND FOR LAND: RENT GRADIENTS AND RENT SURFACES ........................... 49 6.3.1 Rent Gradients and Surfaces with Output Orientation .............................................................................. 49 6.3.2 Rent Gradients and Rent Surfaces with Input Orientation......................................................................... 50 6.3.3 Rent Gradients and Multiple Access ...................................................................................................... 51 6.4 INTERACTIVITY COMPETITION FOR SPACE..................................................................................... 51 6.4.1 A Basic Sequence of Rural Land Uses ................................................................................................... 51 6.4.2 Activity Characteristics Determining Access Priority and Location............................................................ 52 6.5 RURAL AND URBAN LAND USE ALLOCATION ................................................................................. 52 6.5.1 Some Characteristics of Urban Economic Activity .................................................................................. 53 6.5.2 Equilibrium of Land Uses and Rents ..................................................................................................... 54 6.6 RESIDENTIAL LOCATION .................................................................................................................. 54 6.7 RENT AND LAND VALUE ................................................................................................................... 56 6.7.1 Speculative Value of Land.................................................................................................................... 56 6.7.2 Improvements on Land ........................................................................................................................ 56 6.8 SUMMARY ......................................................................................................................................... 57 SELECTED READINGS............................................................................................................................. 57 APPENDIX 6-1.......................................................................................................................................... 57 Derivation of Formulas for Rent Gradients and Their Slopes............................................................................ 57 ENDNOTES .............................................................................................................................................. 59 7 The Spatial Structure of Urban Areas ....................................................................................................... 60 7.1 INTRODUCTION ................................................................................................................................. 60 7.2 SOME LOCATION FACTORS ............................................................................................................... 60